Reuters reported that while no deal was imminent, the two companies have engaged in talks, according to an unnamed source.
Alphabet, the parent company of Google, would be getting the company at a discount as the stock has dropped from its all-time high above $50 a share in 2015 to its current level. The stock was up 28% to $5.51 on Monday.
"Clearly, Fitbit is struggling and I think that the question for them is whether a fitness tracker watch is, while nice to have by itself, is it enough on its own," said Chris Versace, Chief Investment Officer of Tematica. "Or would it work inside a larger company as a complimentary piece? The answer is yes, Fitbit is complimentary to Google's hardware offerings."
Fitbit has been in the news recently due to plans to pull its production out of China as the company looks to lower production costs amid the trade war between the U.S. and China.
The company has shipped more than 100 million devices since its inception in a wearables category that has been growing 20%-30% with only about 10% penetration globally, according to an interview CEO James Park had with Yahoo Finance.
Earlier this month, the company announced a partnership with the Bristol-Myers Squibb-Pfizer alliance in order to help users with early detection of heart troubles.
"But we're also looking beyond the detection and diagnosis, and trying to think about the whole health care pathway as it relates to AFib. It's why we're working with, collaborating with, BMS Pfizer to make that happen," Park said in an interview earlier this month.
Fitbit plans to release its third-quarter results after the closing bell on Nov. 6. Analysts are expecting the San Francisco-based company to report a loss of 10 cents a share on revenue of $345.26 million.
Alphabet and Apple are holdings in Jim Cramer's Action Alerts PLUS charitable trust.